Answer to Question #50874 in Finance for asif

2015-02-21T22:51:39-0500

Question #50874

Farrelly enterprises has fixed operating cost of $500,000, variable operating cost per unit of $20 and a selling price of $40. The firm's capital structure consists of $600,000 loan at 10% interest, 10,000 shares of preferred stock paying an annual dividend of $3 per share and $50,000 shares of common stock outstanding. Farrelly has a 34% tax rate. Calculator Farrelly operating breakeven point in units and in dollar sales